Kratos Posts Small Quarterly Loss as Revenue Jumps 36%

The loss was roughly break-even on a per-share basis, compared with a profit of $8.7 million, or 5 cents a share, a year earlier. Excluding certain one-time items, Kratos earned 24 cents a share, ahead of the 21 cents analysts expected, according to FactSet. Revenue also edged past the $471.4 million analysts had forecast.

Growth in the government solutions business was strongest in defense rocket systems, turbine technologies, microwave products, and space, training and cyber. Organic revenue in defense and rocket support alone more than doubled. Revenue in unmanned systems declined about 14%, reflecting a $16 million shipment in the same quarter last year.

Kratos raised the lower end of its full-year revenue outlook to $1.78 billion, from $1.75 billion previously, and now expects a range of $1.78 billion to $1.81 billion. For the fourth quarter, it forecast revenue of $480 million to $510 million; analysts’ projection was $491.5 million.